gross profit ?

what is the gross profit ?

Financial Assignment Question #1: A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $265,000 (at cost). Operating costs are $90,000. a. Calculate the cost of goods sold Beginning inventory + merchandise purchased - Ending inventory $260,000 + $500,000 - $ 265,000 -$495,000/ b. Calculate the net profit = Cross protot - Operating costs = $ 155,000-$90,000 Net profitt $65,000/ * Gross profit= sales - cost of goods solo = $650,000 $495,000 Question # 2: A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost. Net purchases during the month are $40,000 at cost and $170,000 at retail. Transportation charges are $7,000. Sales are $150,000. Markdowns and discounts equal $20,000. A physical inventory at the end of the month shows merchandise valued at $10,000 (at retail) on hand. Compute the following: a. Total merchandise available for sale - at cost and at retail At Cost. At Retail $35,000 $40,000+ $82,000// $60,000 PZ#170,000 . b. Cost complement ($230,000 # 7,000 Total cost valuation / Total Retail valuation $82,000 $230,000 = 0.3565 36% c. Ending retail book value of inventory merch Available for sale -sales - Markdowns discounts $230,000 -$150,000 -$20,000 . d. Stock shortagels=$60,000 ] ending retail book value of inventory = $60,000 On hand physical inventory at the endut the Month= $10,000 e. Adjusted ending rela tork Shortage = $59.000 ending retail book value- stack shortages & stock $60,000-$50,00d - $10,000 overages f. Gross profit